CFDs Market Information

Transcription

1 CFDs Information General notes i) All details are correct at time of going to press. ii) London Capital Group Ltd reserves the right, at its sole discretion, to alter the contract specifications at anytime and to widen spreads or increase margins in times of excessive market volatility. iii) All times stated are UK times. Automatic Stop Loss Order We will automatically assign a stop loss order to every trade placed on your account. This stop loss is based on 80% of the Initial Margin that is applied to the trade. For instance, if you have 2000 in your account and you trade the UK100 Daily at 10 per, the system will automatically allocate a stop loss 120 s away (because the maximum Initial Margin for the UK100 Daily is 150 and 80% of 150 is 120). You would also have 500 remaining as available funds on your account. Alternatively, if there are insufficient trading resources to cover the maximum Initial Margin, the system will allocate the stop level based upon 80% of the amount that was taken as Initial Margin, which would be the total trading resources available on your account. You may amend your stop loss to whatever level you desire, subject to the minimum stop loss distance for each market and the margin requirements. Although the automatic stop loss does go some way towards limiting your risk on your open trades, you must be aware that all orders including stop losses are subject to slippage and market gaps unless you specify for your stop loss to be guaranteed. The minimum and maximum Initial Margin requirements vary depending on the market. Initial Margin () The Initial Margin is the amount of unencumbered trading resources required to open each trade. The minimum is the minimum Initial Margin required to open a particular trade. You can calculate the minimum level of funds required to open a new position by multiplying the minimum by your stake. For example, the current minimum for the UK 100 Index is 0, therefore if you wish to trade 5 per you need a minimum of 150 available funds on your account (0 x 5 = 150). The minimum varies depending upon the market. Guaranteed Stop Orders LCG now offer Guaranteed Stop Orders. With Guaranteed Stop Orders you can trade safe in the knowledge that, should a market gap through your stop level, you will not suffer any extra losses from the slippage and you will be stopped out at the level you requested. As Guaranteed Stop Orders are a form of insurance against market gaps, they come at a small extra cost. Firstly, there s a premium you have to pay for selecting your mandatory Stop to be guaranteed and secondly, it needs to be placed further away from your entry level than if it was a non-guaranteed Stop. When instructing us to attach a Guaranteed Stop Order to an existing open position, an opening trade, or a new order, we will charge a premium by executing a cash debit to your account. Opting for your Stop to be guaranteed will also recalculate the minimum distance away from your opening trade. Further details of the premiums and minimum distances can be found below. Limited Risk Accounts London Capital Group now offer Limited Risk accounts. A Limited Risk account helps minimise the risks of trading by associating a Guaranteed Stop Order with all your positions.depending on your level of experience and financial situation you may be steered towards this account when you apply. Once you have some experience you can always contact Customer Support to request to swap your account to a standard account which means you will have the option of placing Guaranteed Stop Orders if you wish but these will not be mandatory. As mandatory Guaranteed Stop Orders are essentially a form of insurance against market gaps, they come at a small cost. This will be a premium that will be debited from your account when you place a trade. You should also note that by opting for a Limited Risk Account your Stop will need to be placed further away from your entry level than if you selected a standard account where Guaranteed Stop Orders are not mandatory. Short Selling Restrictions Please be advised that various regulators have imposed short selling restrictions on a small number of the equity markets we quote. This means that you are not allowed to hold sell positions in these markets. Whilst we will attempt to keep you informed of the changes imposed by the regulators, please understand that it is your responsibility to know which shares you can and cannot short. If you place a trade in contravention to these restrictions we may, solely at our discretion, close any such position without notice to you. We will close positions at either the current quote or at the entry level plus our spread. You will be liable for any loss you might incur as a result of such an action by us and you may also be liable to action taken by the regulator due to your contravention of said regulations. If you do have a specific query about an individual share, please check with the relevant exchange or you can contact our dealing team who will endeavour to assist you. Jan 201 LCG will not quote any markets outside of its opening hours which are generally Sun 22:00 to Fri, UK time. 1

2 FUTURE INDICES LCG Quoting hours) stake / unit risk I M per contract spread) Contract s Last Trading Charges imum UK :00-07:50 & 08:00-08:00- (- 08:00)* (GBP) (5) 2 s rd Fri (or ) of contract 10:00 Official LIFFE 2 0 Australia :50-05:0 & 06:10- *** 22:50-05:0 & (06:10- )*** (AUD) (4) preceding the third Thurs of the until **** Official ASX on rd Thurs of the 50 Wall Street 21:0-22:0 & 21:0-22:0 & Near 6 - Far 8 2 s End of business preceding rd Fri (or ) of contract Expires on the Special Opening Quotation on the rd Fri of the month German 0 (- 07:00)* (6) 2 s rd Fri (or ) of contract France 40 07: rd Fri of until 14:0 Official Euronext Paris 0 Japan :0-22:0 & 21:1-22:0 & 2: End of business preceding 2nd Fri (or ) of contract Expires on the Special Opening Quotation on the 2nd Fri of the month US :0-22:0 & 21:0-22:0 & s End of business preceding rd Fri (or ) of contract Expires on the Special Opening Quotation on the rd Fri of the month EU Stocks s rd Fri (or ) of contract 10:00 for EU Stocks 50 contract US Tech :0-22:0 & 21:0-22:0 & s End of business preceding rd Fri (or ) of contract Expires on the Special Opening Quotation on the rd Fri of the month. 2 0 Netherlands rd Fri of until 14:0 Official Euronext Amsterdam 5 50 Switzerland 20 07:01-20:57 (CHF) s Thurs or before rd Fri of until 20: Russ 2K 01:00-2:00 01:00-2: End of business preceding rd Fri (or ) of contract ) Expires on the Special Opening Quotation on the rd Fri of the month

3 India 50 0:45-10:00** 0:45-10:00** Last Thurs (or ) of contract 09:0** Official NSE price of US 500 CNX India German MidCap 1 Index rd Fri (or ) of contract 11:0 price Hong Kong Index 1:15-4:00 & 5:00-8:15 & 9:00-15:00 ** 1:15-4:00 & 5:00-8:15 & 9:00-15:00 ** 1 Index Business preceding last business of 08:00** Official Hong Kong China Enterprise 1:15-4:00 & 5:00-8:15 & 9:00-15:00 ** 1:15-4:00 & 5:00-8:15 & 9:00-15:00 ** 1 Index Business preceding.last business of until 08:00** Official H-Shares Brazil Index 12:00-20:10** 12:05-20:10** 1 Index of Feb, Apr, Jun, Aug, Oct, Dec Wed closest to 15th calendar or closest business until 20:00** Official BMF US-$ Index 01:00-22:00 01:00-21: Index Fri preceding rd Wednes of contract 20:00 at last market traded price in the future before CFD is the equivalent of 1 currency unit in the underlying market (e.g. 1, 1, $1 etc per ). Example Buy 1 CFD of FTSE at and then Sell 1 CFD of FTSE at to close = 1 profit. Buy 1 CFD of Wall Street at and then Sell 1 CFD of Wall Street at to close = $1 profit. ** +1 hour during BST

4 CASH INDICES LCG Quoting hours) unit risk (currency) per contract spread) Contracts Last Trading Charges imum UK :00-07:50 & 08:00-08:00- (-08:00)* (GBP) (5) 2 20 Wall Street 21:0-22:0 (21:0-22:0) & (14:0) & 14:0- & (-) (2) 4 50 German 0 (-07:00)* (6) 0 US :0-22:15 & (21:0-22:15) & (14:0) & 14:0- & (-) US Tech 100 (0.1) 21:0-22:15 & 21:0-22:15 & Russ 2K 01:00-2:00 01: UK Mid :00-16:0 08:05-16:29 (GBP) France 40 07: Spain 5 CFD 08:00-19:00 08:00-19: New US Tech 100 Daily 21:0-22:0 2:00-21:0-22:0 2: Hong Kong Index Daily 1:15-4:00 & 5:00-8:15 & 9:00-15:00 ** 1:15-4:00 & 5:00-8:15 & 9:00-15:00 ** 1 Index Japan 225 Daily 21:0-22:15 & 21:1-22:15 & 2: Australia :50-05:0 & 06:10-20:00 *** 22:50-05:0 & (06:10-20:00)*** (AUD) () 0 Ireland 08:00-16:25 08:05-16: Please note that all our indices are priced off the front futures contract. We reserve the right to go to telephone trading outside of exchange hours. * Closed -21:0 + 22:0-2:00 ** + 1 hour during BST *** + 2 hours during BST 1 CFD is the equivalent of 1 currency unit in the underlying market (e.g. 1, 1, $1 etc per ). Example Buy 1 CFD of FTSE at and then Sell 1 CFD of FTSE at to close = 1 profit. Buy 1 CFD of Wall Street at and then Sell 1 CFD of Wall Street at to close = $1 profit. 4

5 INTEREST RATE FUTURES LCG Quoting unit risk (currency) per contract Contract s Last Trading Charges imum Euribor 01:00-06:45 & 01:00-06:00 & 1 tick s 2nd Business prior to rd Wednes of 10:00 Official LIFFE 2 10 Euroswiss 07:0-18:00 07:0-18:00 1 tick (CHF) s 2nd Business prior to rd Wednes of 10:00 Official LIFFE 2 10 Short Sterling 07:0-18:00 07:0-18:00 1 tick (GBP) s rd Wednes of contract month 09:00 Official LIFFE CFD is the equivalent of 1 currency unit in the underlying market (e.g. 1, 1, $1 etc per ). Example Buy 1 CFD of Euribor at and then Sell 1 CFD of Euribor at to close = 1 profit. 5

6 BOND FUTURES LCG Quoting unit risk (currency) per contract Contract s Last Trading Charges imum BOBL s 07:02-1 tick Two business s prior to 10th calendar or next business of 09:00 25 Bund s 07:02-1 tick Two business s prior to 10th calendar or next business of at 09:00 0 Gilt s 08:00-18:00 08:00-18:00 1 tick (GBP) rd last business of previous month at 16:00 Official LIFFE 0 Schatz s 07:02-1 tick Two business s prior to 10th calendar or next business of at 09:00 20 US 0 Year 22:00 22:00 ( Fri) 1 tick Two business s prior to the first business month at 20:00 Official CBOT on our last trading US 10 Year 22:00 22:00 1 tick Two business s prior to the first business month at 20:00 Official CBOT on our last trading CFD is the equivalent of 1 currency unit in the underlying market (e.g. 1, 1, $1 etc per ). Example Buy 1 CFD of Bund at and then Sell 1 CFD of Bund at to close = 1 profit. 6

7 COMMODITIES LCG Quoting hours) unit risk (currency) per contract spread) Contracts Last Trading Charges imum Brent Crude Oil s 01:00-2:00 (01:01 07:00) 07:00 ( - 22:59) per (8) 2 business s before the 15th prior to the first of the delivery month at 17:00 on 4 10 US Crude Oil s 22:15 (07:00) per (8) 6 business s before the 25th calendar of month prior to the at 19:0 Official NYMEX on 4 10 Gas Oil 01:00-2:00 01:01-22:59 per business s prior to the 14th calendar of the delivery at 12:00 on Carbon Emissions 17:00 17:00 per December only Second Fri of at 17:00 on Natural Gas s 22:15 22:15 per business s business month at 19:0 Official NYMEX on Heating Oil s 22:15 22:15 per business s business month at 19:0 Official NYMEX on Gold 22:15 22:15 per Gold s 10:00-09:15 22:15 per of Feb, Apr, Jun, Aug, Dec 4 business s business of the at 18:0 Official COMEX on Silver s 22:15 22:15 per of Mar, May, Jul, Sep, Dec 4 business s business of the at 18:0 Official COMEX on 6 50 US Copper s 22:15 22:15 per of Mar, May, Jul, Sep, Dec 4 business s business of the at 18:00 Official COMEX on US Wheat s 01:00-1:45 & 14:0-19:15 01:00-1:45 & 14:0-19:15 per 1 dollar * of Mar, May, Jul, Sep, Dec 8 business s business month at 19:00 Official CBOT on US Soybean s 01:00-1:45 & 14:0-19:15 01:00-1:45 & 14:0-19:15 per 1 dollar * of Jan, Mar, May, Jul, Aug, Sep, Nov 8 business s business month at 19:00 Official CBOT on US Unleaded Gasoline s 22:15 22:15 per month 2 business s business month at 19:0 Official NYMEX on

8 World Sugar 08:0-19:00 07:0-19: * March, May, July, October 10 business s prior to 1st of delivery month on our last trading US Coffee 08:0-19:00 08:0-19: * March, May, July, September, December 15 business s prior to 1st of delivery month on our last trading US Cocoa 09:00-19:00 09:00-19: * March, May, July, September, December 15 business s prior to 1st of delivery month on our last trading Cotton No 2 02:00-19:0 02:00-19:0 per * Mar,May, Jul, Oct, Dec Six business s before the first delivery month on our last trading 2 50 Orange Juice 1:00-19:00 1:00-19:00 per * March, May, July, Sept, November 7 business s business month on our last trading CFD is the equivalent of 1 currency unit in the underlying market (e.g. 1, 1, $1 etc per ). Example Buy 1 CFD of US Crude at and then Sell 1 CFD of US Crude at to close = $1 profit. * Typical spread applied around underlying market spread 8

9 SPOT CURRENCIES Major Pairs LCG Quoting unit risk spread) Contract Last Dealing Charges imum AUD/JPY AUD/USD CHF/JPY EUR/AUD EUR/CAD EUR/CHF EUR/GBP EUR/JPY EUR/USD GBP/EUR GBP/JPY Spot FX CFDs do not have an expiry date. 24hr markets for Major Pairs will normally open at 07:05 on Mon morning and close at 06:00 on Satur morning GBP/USD NZD/USD USD/CAD USD/CHF USD/JPY or Pairs LCG Quoting unit risk spread) Contract Last Dealing Charges imum AUD/CAD AUD/CHF AUD/NZD AUD/SGD CAD/CHF CAD/JPY EUR/NOK EUR/NZD EUR/SEK EUR/ZAR GBP/CAD GBP/CHF GBP/NZD Spot FX CFDs do not have an expiry date GBP/ZAR GBP/AUD NZD/CAD hr markets for or Pairs will normally open at 2:00 on Sun evening and close at on Fri night NZD/CHF NZD/JPY SGD/JPY USD/CZK USD/DKK USD/HUF USD/MXN USD/NOK USD/PLN USD/SEK USD/SGD USD/ZAR Profit and loss (P/L) reporting for FX CFDs P/L is incurred in the quote currency (the second currency of the FX pair). For FX pairs with a unit risk of, 1 CFD is the equivalent of 10,000 of the base currency (the first currency of the FX pair). For FX pairs with a unit risk of 0.01, 1 CFD is the equivalent of 100 of the base currency (the first currency of the FX pair). Example 1 CFD of = 10,000 or $15,575, so Buy 1 CFD of GBP/USD at and then Sell 1 CFD of GBP/USD at to close = $1 profit). 1 CFD of = $100 or Y9,400, so Buy 100 CFDs of USD/JPY at and then Sell 100 CFDs of USD/JPY at to close = 100 profit).

10 INDIVIDUAL SHARES LCG Quoting unit risk Contracts Charges (from) imum Distances (from) 1 UK :00-16:0 08:01-16:0 penny % 10% 0.1% 0.50% 5% UK Mid :00-16:0 08:01-16:0 penny 5% 10% 0.25% 1% 10% UK Small Cap & A (selection of) 08:00-16:0 08:01-16:0 penny Variable Variable 0.25% 1% 0% US 500 & US Tech 100 (selection of) 14:0-14:1- cent 5% 15% 0.1% (min 1 cent) 1% 10% German 08:00-16:0 08:0-16:0 cent 5% 10% 0.2% 1% 10% Ireland ISEQ shares 08:00-16:28 08:05-16:25 cent 5% 15% 0.25% (min 0.01 EUR) 2% 20% French 08:00-16:0 08:01-16:0 Cent Move 5% 10% 0.2% 1% 10% Holland 08:00-16:1 08:01-16:1 Cent Move 5% 10% 0.2% 1% 10% Selection of Swedish shares 08:00-16:20 08:02-16:19 SEK 5% 15% 0.10% 2% 20% Selection Norwegian Shares 08:00-15:20 08:01-15:19 NOK Mov 5% 15% 0.10% 2% 20% Selection of Danish Shares 08:00-16:00 08:02-15:45 DKK Mov 5% 15% 0.10% 2% 20% South African 15:00** 07:05-14:48** Cent 10% 20% 0.25% 2% 20% Selection of Indian Shares 0:45-10:00** 0:45-10:00** INR Mov 10% 20% 0.25% 2% 20% Australian shares 01:00-07:00 01:00-07:00 cent 5% 15% 0.05% commision* 0.50% 5% Selection of Spanish 08:00-16:0 08:01-16:0 cent 5% 10% 0.20% 2% 20% s & commissions For shares we do not charge commission or minimum commission, but instead we apply a spread either side of underlying market spread, as detailed in the table above. 1 CFD is the equivalent of 1 share in the underlying market. Example Buy 10,000 CFDs of Vodafone at 95.0 and then sell 10,000 CFDs of Vodafone at to close = 1,500 profit. ** +1 hour during BST 10

11 Cash Contracts Cash contracts provide a cost-effective solution for short to medium term trading. They do not have an expiry date. An overnight financing rate is applied for every night that you hold a position open. Because you have only a small percentage of the full value of the trade as margin on deposit, your account incurs a debit or credit for each that the position is held overnight. Similar to a mortgage on a property, you can put down a deposit and the rest remaining balance you can pay for with an interest only loan from the bank. In the event of a corporate action or dividend being applied to the underlying market, a cash adjustment may be made to the account to reflect this redistribution of cash. A haircut may be applied to the value of this cash adjustment. Contracts s contracts will expire at a future date. The price is derived from the relevant underlying product or a related future and will factor in the cost of carry to the expiry date. No overnight finance charges will therefore be applied to positions held overnight. Relevant interest rate levels and time to expiry are the key determinants of the cost-of-carry that will be factored into the future contract price. In the case of equity related futures, we may apply a cash adjustment in the event of corporate actions or dividend payments during the life to reflect this redistribution of cash if it has not been discounted in the future contract s price. A haircut may be applied to this adjustment dependant on several factors for example applicable tax rates, clearing cost to process dividend payments etc. The future contract can be closed at any time before it expires, just as you can with a rolling contract. Last updated : January